RAK Digital Assets Oasis ("RAK DAO") is a free zone in Ras Al Khaimah, established under Law No. 2 of 2023, and the world’s first free zone dedicated exclusively to digital and virtual-asset and Web3 businesses. It is distinctive for 100% foreign ownership, crypto-friendly setup, the 0% qualifying free-zone tax regime, and a pioneering DAO Association Regime.
Most founders use a free-zone company (FZ-LLC / standard company) within RAK DAO; a branch or subsidiary is also available, along with a freelance permit. RAK DAO additionally offers the DAO Association Regime 2024 — the first legal framework allowing a decentralized autonomous organization to incorporate as a legal entity.
There is no fixed minimum capital, 100% foreign ownership and a single shareholder are allowed with no residency requirement, and a registered office (often a flexi-desk) within RAK DAO is required. Licensing is digital-first and typically completes within about a week; a licence covers up to five activities, with a fee from roughly AED 13,095 (≈ US$3,565) and AED 2,000 (≈ US$545) per additional activity. Crucially, RAK DAO is a business-registration authority, not a financial regulator: it licenses only non-regulated digital-asset activities (development, Web3 services, DAO services, NFTs, advisory), while regulated virtual-asset services (exchanges, custody, token offerings of securities) require authorisation from VARA (Dubai), the ADGM FSRA, or the federal Securities and Commodities Authority.
UAE federal corporate tax applies at 9% above AED 375,000 (≈ US$102,000), with 0% available to a Qualifying Free Zone Person on qualifying income, and federal VAT of 5%; there is no personal income tax or withholding tax, and full profit repatriation is allowed, administered by the Federal Tax Authority ("FTA"). Beneficial owners are disclosed to the free-zone authority.